Property valuations improved markedly in Q1 thanks to a more-than 120 bps fall in Treasury yields as investors flocked to safe-haven assets. This marked the fifth consecutive quarter of improving valuations, with the apartments and retail sectors nudging into undervalued territory. Nevertheless, with property income streams likely to take a hit over the next 12 months as occupancy and rents both fall, we don’t see current valuations as providing a “buy” signal just yet.
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